Which of the following is not true about economic models? A. A model is a simplified representation of the real world. B. In comparing two models, the simpler one is better, other things equal. C. Models are used to explain and predict human behavior. D. A good model must be realistic.

Question

Social Studies

Cindy Turner

29 January, 06:06

Which of the following is not true about economic models? A. A model is a simplified representation of the real world. B. In comparing two models, the simpler one is better, other things equal. C. Models are used to explain and predict human behavior. D. A good model must be realistic.

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Answers (1)

Know the Answer?

Liliana Davenport · Answer 1

C). A good model must be realistic.

Explanation:

Economic model is described as the speculative build up that incorporates economic operations through a determined set of variables in a reasonable association or relationship between them.

As per the question, option C displays an incorrect or false statement about the 'economic models' as the economic models are not associated with a realistic perspective but rather adopts a rational or logical construct to display or represent the economic relationships or behavior and their reality in a simplified or modified manner. Thus, option C is the correct answer.